NYS Real Estate Exam Questions and
Answers
Tenants enter into what type of arrangement when they lease all or part of their leasehold
interest?
Sublease
Exchange
Estoppel
Attornment - correct answer-Sublease
What is the term used for the difference between rentable and usable area? - correct
answer-Loss Factor
Who pays the tax in triple net lease? - correct answer-Tenant
What kind of SF is commercial rent based on?
Rentable
Usable
Common
Taxable - correct answer-Rentable
Pam finds out her lease forbids evening cocktail parties in her store. The prohibition is
probably in which lease clause? - correct answer-Use clause
An office is 10,000 SF rentable and 8,000 SF usable, what is loss factor %? - correct
answer-[8,000 (usable)]/[10,000 rentable (gross)] = 100% rentable & 80% efficiency = 20%
loss factor
What lease is used for unfinished space not divided into rooms, used for storage or
warehousing?
Loft Lease
Net Lease
Gross Lease
Percentage Lease - correct answer-Loft Lease
Which lease clause calls for increased costs to tenant at specific times during lease term?
Alteration
Escalation
Percentage
Attornment - correct answer-Escalation
, What is a longterm lease on commercial property? - correct answer-Ground lease
Real property tax is what kind of encumbrance?
Lien
Easement
Encroachment
Escheat - correct answer-Lien
Encumbrance Definitoin - correct answer-Legal or financial problem attached to the real
estate
What is true of liens?
Related to debt
Involuntary
Encroachments
All encumbrances are liens - correct answer-Related to debt
Who is least likely to get real estate tax exemption?
Farmers
Veterans
Second Homeowners
Gold Star families - correct answer-Second Homeowners
Pam's house has $180,000 market value. Uniform tax assessment is 60%. What is assessed
value? - correct answer-180,000 * .06 = $108,000
Residential condos are considered what type of property for tax evaluation?
Homestead
Non-Homestead
Special Taxing District
Non-conforming - correct answer-Homestead
How much capital gains tax would a married couple be responsible for if they sell their
primary home for $350,000? - correct answer-Zero
What kind of income do you get from daily operation of a business? - correct answer-Active
What kind of income do you get from limited partners and a partnership? - correct
answer-Passive
What is tax depreciation period for an office building? - correct answer-39 years
What is tax depreciation period for an apartment building? - correct answer-27.5 years
Answers
Tenants enter into what type of arrangement when they lease all or part of their leasehold
interest?
Sublease
Exchange
Estoppel
Attornment - correct answer-Sublease
What is the term used for the difference between rentable and usable area? - correct
answer-Loss Factor
Who pays the tax in triple net lease? - correct answer-Tenant
What kind of SF is commercial rent based on?
Rentable
Usable
Common
Taxable - correct answer-Rentable
Pam finds out her lease forbids evening cocktail parties in her store. The prohibition is
probably in which lease clause? - correct answer-Use clause
An office is 10,000 SF rentable and 8,000 SF usable, what is loss factor %? - correct
answer-[8,000 (usable)]/[10,000 rentable (gross)] = 100% rentable & 80% efficiency = 20%
loss factor
What lease is used for unfinished space not divided into rooms, used for storage or
warehousing?
Loft Lease
Net Lease
Gross Lease
Percentage Lease - correct answer-Loft Lease
Which lease clause calls for increased costs to tenant at specific times during lease term?
Alteration
Escalation
Percentage
Attornment - correct answer-Escalation
, What is a longterm lease on commercial property? - correct answer-Ground lease
Real property tax is what kind of encumbrance?
Lien
Easement
Encroachment
Escheat - correct answer-Lien
Encumbrance Definitoin - correct answer-Legal or financial problem attached to the real
estate
What is true of liens?
Related to debt
Involuntary
Encroachments
All encumbrances are liens - correct answer-Related to debt
Who is least likely to get real estate tax exemption?
Farmers
Veterans
Second Homeowners
Gold Star families - correct answer-Second Homeowners
Pam's house has $180,000 market value. Uniform tax assessment is 60%. What is assessed
value? - correct answer-180,000 * .06 = $108,000
Residential condos are considered what type of property for tax evaluation?
Homestead
Non-Homestead
Special Taxing District
Non-conforming - correct answer-Homestead
How much capital gains tax would a married couple be responsible for if they sell their
primary home for $350,000? - correct answer-Zero
What kind of income do you get from daily operation of a business? - correct answer-Active
What kind of income do you get from limited partners and a partnership? - correct
answer-Passive
What is tax depreciation period for an office building? - correct answer-39 years
What is tax depreciation period for an apartment building? - correct answer-27.5 years
